EURUSD has broken above the major short-term resistance at 1.1660 and is now trading a few pips below 1.17. There is a bullish setup in EURUSD that will be valid on a break above 1.1740 and will give us 1.19-1.20 as the target area.
Red line - resistance (broken)
Blue dots - medium strength support
Dark blue dots - maximum strength support
If the entire corrective pull back in EURUSD completed at 1.1520 we could already have started the next leg up towards 1.19-1.20. The Fibonacci extension gives me 1.1960 as the first target. If price continues to make higher highs and higher lows and holds above 1.16, I expect to see this up trend extend towards the target area. A break below 1.16 will open the way for a deeper pull back towards 1.14.
